Swiss Council of States approves Mercosur trade deal with 517 million CHF farm package

The Swiss Council of States has approved the free trade agreement between EFTA and the Mercosur bloc, consisting of Argentina, Brazil, Paraguay, and Uruguay. The decision, passed with 35 votes to 7, includes a significant financial package designed to mitigate the impact of the deal on the Swiss agricultural sector.

To secure support, the Council approved 517 million CHF to be distributed between 2028 and 2033. This package includes 480 million CHF for investment credits and 37 million CHF for market promotion to enhance the competitiveness of agricultural businesses. This amount is considerably higher than the 158 million CHF originally requested by the Federal Council.

The agreement returns to the National Council for further decision-making after the lower house rejected the deal during the summer session. While proponents argue the agreement includes modern sustainability standards, some minority members raised concerns regarding environmental protections, specifically citing the need to address issues like deforestation in the Amazon.